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The EU and U.K. PRIIPs Regulations have had a significant effect on practices in the wholesale capital markets. Uncertainty about whether some financial instruments qualify as a PRIIP has resulted in cautious interpretations and the exclusion of retail investors from debt offerings. To address these challenges, the U.K. government granted the Financial Conduct Authority new powers to make rules on the scope of products subject to the U.K. PRIIPs Regulation. The FCA has now made rules to clarify when certain features of corporate bonds make a product a PRIIP and provided new guidance on what it means for a financial instrument to be “made available” to retail investors. This memorandum summarizes the key changes that firms need to comply with by 2023 when offering or otherwise making available financial products to U.K. retail investors or in the U.K. markets.
